David Cullen - The Netco Model
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David Cullen of INCA. Presentation to the INCA Rural Community Broadband Seminar 06 March 2013
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David Cullen - The Netco Model
- 1. The INCA NetCo Model: A Collaborative Investment Approach INCA Rural Community Broadband Seminar 6th March 2013 David Cullen, INCA Board Member Director Prism Business Consulting
- 3. Balancing the Scales in the Business Model For all: For providers: For providers: For all: Demand Competencies Contribution Coverage Take-up Rates Capabilities Control Capacity Cash grams grams lbs lbs Risk Reward • Optimum for each party is the highest Reward for the lowest Risk (a ‘struck balance’) • Differing priorities (andunits of measurement) exist between parties • short term imperatives for communities and government • medium term returns (3 – 5 years) for service providers • long term investments (5- 25 years+) in infrastructure • The overall optimum is a balance across all parties
- 7. The ‘AssetCo’/ ‘NetCo’ Models • A collaboratively- owned single entity holding the infrastructure assets (AssetCo) • May also operate the network • Could also deliver services in the absence of other providers Funding providers could include: community and/or local authority vendors and service providers • Ring fences the risk for all parties • Everyone can exercise a level of control in line with their roles and responsibilities • Everyone uses the same ‘units of measurement’
- 9. The INCA NetCo Model: A Collaborative Investment Approach David Cullen INCA and Prism Business Consulting 07798 518658 david.cullen@prismbc.net
Editor's Notes
- I’m not intending to repeat Malcolm’s announcements from this morning’s keynote sessioninstead I want to briefly explain the why and howINCA has spent the last 8 months talking with the industry.There IS money availableIt’s just too fragmented and hesitant on its own.SO we have asked all parts of the industry “What’s REALLY the problem and how could we fix it.And We’ve joined the dots…
- The result is the proposal INCA has submitted on behalf of its members last weekIt recommends spending a small amount of the Additional £300m to establish a 2nd frameworkOnly this time, its not a procurement frameworkBut a Collaboration frameworkStructured to enable each industry player to contribute their skills and their capital in return for their slice of the actionFocuses on overcoming the 3 key issues from the last 2 years.Lack of Competition, Investment and Innovation.
- The result is the proposal INCA has submitted on behalf of its members last weekIt recommends spending a small amount of the Additional £300m to establish a 2nd frameworkOnly this time, its not a procurement frameworkBut a Collaboration frameworkStructured to enable each industry player to contribute their skills and their capital in return for their slice of the actionFocuses on overcoming the 3 key issues from the last 2 years.Lack of Competition, Investment and Innovation.
- The result is the proposal INCA has submitted on behalf of its members last weekIt recommends spending a small amount of the Additional £300m to establish a 2nd frameworkOnly this time, its not a procurement frameworkBut a Collaboration frameworkStructured to enable each industry player to contribute their skills and their capital in return for their slice of the actionFocuses on overcoming the 3 key issues from the last 2 years.Lack of Competition, Investment and Innovation.
- We have calculated it will take about £600k to build all the components of the frameworkAnd a few million to help kick start private investment.All indications are that a 3:1 multiple is highly realistic= hence the potential for £1bn from the additional £300m.We truly believe this will create a collaborative yet competitive, market and therefore a healthy and well financed one within 18 months.We ask for your support.
- The result is the proposal INCA has submitted on behalf of its members last weekIt recommends spending a small amount of the Additional £300m to establish a 2nd frameworkOnly this time, its not a procurement frameworkBut a Collaboration frameworkStructured to enable each industry player to contribute their skills and their capital in return for their slice of the actionFocuses on overcoming the 3 key issues from the last 2 years.Lack of Competition, Investment and Innovation.
- The result is the proposal INCA has submitted on behalf of its members last weekIt recommends spending a small amount of the Additional £300m to establish a 2nd frameworkOnly this time, its not a procurement frameworkBut a Collaboration frameworkStructured to enable each industry player to contribute their skills and their capital in return for their slice of the actionFocuses on overcoming the 3 key issues from the last 2 years.Lack of Competition, Investment and Innovation.
- The result is the proposal INCA has submitted on behalf of its members last weekIt recommends spending a small amount of the Additional £300m to establish a 2nd frameworkOnly this time, its not a procurement frameworkBut a Collaboration frameworkStructured to enable each industry player to contribute their skills and their capital in return for their slice of the actionFocuses on overcoming the 3 key issues from the last 2 years.Lack of Competition, Investment and Innovation.
- I’m not intending to repeat Malcolm’s announcements from this morning’s keynote sessioninstead I want to briefly explain the why and howINCA has spent the last 8 months talking with the industry.There IS money availableIt’s just too fragmented and hesitant on its own.SO we have asked all parts of the industry “What’s REALLY the problem and how could we fix it.And We’ve joined the dots…